Global Matters Weekly – 11 July 2022

Inflation Licked Bonds

by Alex Harvey, CFA

— When it comes to inflation though, postage costs are probably not front and centre of people’s minds.

Before the 4th of April this year, it cost 85 pence to send a letter first class in the UK. After that date you have needed to stick another 10 pence stamp onto your letter to maintain its first-class status. But if you had a ‘1st’ class stamp knocking about in a drawer, it effectively increased in value by an inflation busting 11.7% this year (and 11.8% the year before that).

When it comes to inflation though, postage costs are probably not front and centre of people’s minds.

Market Snapshot

  • Global equities returned 1.7% last week
  • Slightly improving labour and production data saw most equity markets rise
  • Brent crude fell by 6.3% to $104.7 a barrel
  • Gold fell by 3.8% to $1742.7 per ounce.